CBN mandates local data storage for banks by 2027

The Central Bank of Nigeria (CBN) is enforcing a directive requiring banks, fintechs, and other regulated financial institutions to localize the storage and management of critical payment transaction data by January 1, 2027. This policy aims to enhance financial system stability, oversight, and the protection of sensitive information.

However, it has raised concerns, particularly among institutions reliant on foreign cloud infrastructure. A survey by the National Information Development Agency (NITDA) and CBN revealed that only 59% of financial institutions are prepared for the deadline.

Dr Rakiya Yusuf, Director of the CBN’s Payment System Supervision Department, emphasized the importance of national sovereignty and regulatory visibility. The transition involves significant technical and operational challenges, especially for smaller operators like payment companies and microfinance banks.

These institutions may struggle to migrate their systems from international cloud platforms to local data centers while maintaining uninterrupted services. Mr. Ikechukwu Nnamani, CEO of Digital Realty Nigeria, is also involved in addressing these challenges.